Determinants of Local Authority’s Online Accountability Practices Disclosure

This chapter examines the determinants of accountability practices disclosure on the websites of Malaysian local authorities, from the institutional isomorphism perspective.

A content analysis was employed to examine the websites of all local authorities in Malaysia. A modified accountability disclosure index was used to examine the extent of accountability practices disclosure on websites. Multiple regression analysis was conducted to examine the significant impact of institutional factors on the accountability practices disclosure.

The results suggest that, on average, Malaysian local authorities have disclosed 42 items (or 42%) of the accountability practices disclosure on the websites. The implementation of innovation activities, political competition and press visibility has statistically influenced the extent of accountability practices disclosure of Malaysian local authorities on the websites on the premise of coercive isomorphism.

This chapter highlights the institutional factors that influence the extent of online accountability practices disclosure of local authorities in developing countries. The findings therefore enable local authorities to explore the best possible approaches to effectively discharge accountability and to promote greater transparency through the dissemination of information on the website.

This chapter contributes to the public sector accounting literature by introducing new institutional factors that influence the disclosure practice of local authorities in Malaysia i.e. the establishment of the Integrity Unit and implementation of innovation activities under the public sector reform agenda.